The Contract

Any changes made by the SFA to the prototype contract must be approved by the Child Nutrition Program Administration office prior to going out to bid.

A.Certain areas in the contract are mandated by federal regulations 7CFR 210.16 and are required to be part of the bid specifications.

(1) Performance Security

Must be at least 10 percent of annual projected operating cost.

(2) Sixty-day Termination Clause – Cannot be changed.

Either party may terminate contract for cause, with 60 days written notice. We recommend the notice be sent by certified mail, return receipt requested.

(3) Penalty Clause – See Term, Termination clause in the Agreement section of the contract.

(4) Authorized Signatures of Both Parties – The school board president’s or executive director's signature is required on the contract and extension.

(5) Twenty-one day cycle menu – This is the most important aspect of the bid specifications. Federal regulations require menus included in the bid be followed for the first 21 days of service. The standards and style of service must be followed for the life of the contract. Menus must include all food items that should be available on a daily or weekly basis in each school. Menus are the basis for estimating costs and formulating bids.

(6) Procurement Specifications – The procurement specifications need to be specific as to what the SFA is looking for and should list the type, style and quality standards for items found in menus as follows:

Name of product

Federal grade

Size information for container and product

Unit on which price will be based (bid units)

Quality indicators: product type

Packaging – procedures and type

Test and inspection procedures

Buy American

(7) Bid Form

The contract is a fixed price per meal bid. The contract will be awarded based on the lowest responsible bid proposal for the combined grand total of breakfast, lunch and snack, which shall reflect a per meal cost for a management fee and direct cost of operations (labor, food and misc. expenses).

A bid of zero or an extremely low bid for management fees amount is not acceptable.

Award is to the lowest responsible bidder, with responsibility determined by the Board of Education or Board of Directors.

(8) Financial Budget Projection

Should be reviewed to determine if the information is reasonable and accurate and to assist in determining the responsibility of the bidders.

Direct costs should be reviewed to determine if Discounts, Rebates and Credits have been passed along to the SFA and appropriately factored into the bid price.

(9) Non-Collusive Statement

Must be completed by the bidder.

(10) The corporate affidavit gives authority to the FSMC personnel listed on the affidavit to sign the contract.

B. Although the district is billed on a weekly or monthly basis, the contract bid is based on the full school year. The SFA is required to review the FSMC’s financial records to determine if payments to the FSMC are within contract limits. Payments to the FSMC may not be carried over from one contract year to another. While NYSED encourages monthly reconciliation to ensure the fiscal integrity of the program, the SFA may use its discretion provided reconciliation is conducted no less frequently than annually.

C. Any changes made by the SFA to the prototype contract must be approved in writing by the Child Nutrition Program Administration Office before going out to bid. Complete NYSED Prototype Pre-bid Contracts are to be emailed to cn@nysed.gov 30 days prior to letting bids. A pre-approval email will be sent to the SFA once the pre-bid has been approved.

USDA Nondiscrimination Statement

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA.

Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.), should contact the Agency (State or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English.